Budget

The problem of debt has been on going for a long time. There are many reasons that can be attributed to this. Many cases of debts result from loss of an income, a bad and dangerous loan or line of credit or even bad judgment. Whatever cases, it is important to resolve any and all cases of bad debt as debt does have its consequences. A creditor can choose to call in their debt, they may refer a case to a collections company or even seek assistance from a court of law. An indebted person will be unable to get credit, a job and many other benefits.…

Sure, you have heard the stereotypes all before.Â We hear that men are better drivers than women, or that women have inequality in the workplace, or the athletic performancesÂ between the two.Â Have you ever considered the gender differences when it came to managing money?Â Quite honestly, this is a new topic for me.Â Â A recent study found that while 42% of men were confident in their investment allocations, only 25% of women felt that same confidence.Â Also, while 80% of men have their cash flow in control, only about 63% of women could say the same thing.Â Though coincidentally, the percentages were both high and nearly identical when it came to investing in an employers 401K plan.…

While I am a seasoned finance professional and a seasoned blogger to boot, I still enjoy reading the pesronal finance musings of other bloggers.Â It’s always interested to get a different take on other views and perspectives, and you just might learn something new in the process.Â Though one idea I will never quite grasp is the “set it and forget it” approach to your financial dealings.Â You have these debt reductions junkies that talk about spending less and saving more, and at the same time they want you to automate your finances and just put bill pay on autopilot.Â What if you’re being overcharged?Â What if you are being charged for something that you didn’t even purchase at all?Â Sometimes the best way to save money is to simply pay attention!…

This is a guest post by Rob Kotevski.Â Rob runs a blog called Health Insurance Australia.

Have you had success with changes made to your budget?Â Are you now living fairly comfortably, in terms of certain spending categories and items?Â Follow along for minor points to optimize the health and status of your budget.

From Yesterday to Today

Much of making progress is being able to see it, and thus evaluate and measure it.Â Before you make the next step, and before you turn the corner with your budget, you must take the time to observe these dynamics.

Take a step back and look at how you have done recently (the last few months to a year, perhaps):

Compare expected to actual spending.Â How have you been doing?Â In particular, how did you do with problem (food and entertainment, commonly) areas?Â Judge whether any lack of progress is acceptable/reasonable or in need of improvement.

A few weeks ago, I went out to dinner with friends of mine that recently got married.Â A little background, I met them at a place that I worked.Â Â He and I worked together for aboutÂ a year, andÂ I laterÂ hired his futureÂ wife.Â She actuallyÂ introduced me to my fiance.Â Kind of a fun side note.Â OK, back to the story.Â When we were out to dinner, they were talking about how much money his wife pays to work downtown.Â She takes the train, which is $150 a month.Â She then takes a cab to and from the train station to her work.Â I was giving her a hard time that she should walk to save money.Â At that point her husband chimed in about how the cab money is part of her budget.Â

These friends have always been the type to spend money, and you could tell.Â They always had stylish clothes, and they always seemed to have the newest electronics.Â I knew that they had debt from their past through conversations over the years.Â I feel that having credit card debt is pretty common these days, so I never thought anything about it.Â I despise credit card debt, but I don’t like to mix my financialÂ thoughts with friends unless they ask.Â The reason I share this with you is because I never really considered themÂ financially smart.Â They, like most, were just an average couple with debt.Â

When my friend began explaining their budget,Â they instantly seemed smarter to me.Â I know this sounds dumb, but It’s the truth.Â I always had respect for my friends, but hearing him talk about their budget and their plan to get out of debt just made them sound smarter.Â The simple fact of not foolishly spending money and restricting their spending to get ahead generated a feeling of pride for my friends.Â

Why I Think Budgets Increase Brain Matter

The simple fact that I think budgets make you seem smarter is because you have to understand financial responsibility and then devote yourself to making it happen.Â

Financial ResponsibilityÂ – the knowledgeÂ that debt, especially credit card debt is not smart.Â Sometimes an unexpected medical bill or family issue can cause this, so don’tÂ think I am not sympathetic to those situations.Â I am talking about the type of debt my friends are in.…